Council policy on Inward Investment is part of the Corporate View prepared for the purpose of achieving best value. In this the Council aims to work closely with the private sector and government agencies such as the IDB and the Department of Economic Development to promote North Down as a viable location for inward investment. As far back as October 1995 Council called for support from IDB in attracting Inward Investment in the High Tech, Plastics, Medical and Leisure Goods sectors.

  In May 1996 Council examined its implementation measures for inward investment policy by considering mechanisms for supporting inward investment using vehicles such as the Private Finance Initiative, the Local Development Company concept and a Borough Property Fund.

  This brief summary of North Down inward investment policy exposes a paradox which is evident when one examines the current industrial development location policy for new inward investment. The policy seeks to target inward investment into the most deprived areas of Northern Ireland. The quantitative measure of deprivation used by Government is the Robson Index. This rates North Down as the least deprived Council area in Northern Ireland. This may be true at District Council level but clear pockets of social need exist based on an analysis at Enumeration District level within the Borough.

  Northern Ireland is competing with other successful and affluent areas of Ireland and Europe for Foreign Direct Investment in the Advanced Technology, ICT and Knowledge Based sectors. Most commentators suggest these sectors are the future growth sectors.

  North Down is perhaps unique in offering the greatest concentration of graduate population anywhere in Northern Ireland. If, as in the knowledge based and high added value sectors, the skill base, quality of life and second level education infrastructure are more significant factors in the FDI decision, then North Down is well placed to compete.

  Council has called for the deprivation criteria that influence IDB support policy to allow for the possibility that absence of deprivation is a significant attraction in the advanced technology and knowledge based sectors. In many cases this can lead to better value for money for the public purse and lower cost per job figures.

  North Downs does currently engage in promotion of Northern Ireland but not through direct advertising. We feel that this is more properly the remit of IDB and others in the DED family. North Down uses a project based approach rather than a destination emphasis and promotes itself as a project opportunity area through direct networking. We use the Sister Cities Network around the world and in North America. In Europe our vehicle is the Edge Cities Network which gives access to local business communities on the edge of Europe's national and regional capital cities.

  Council policy is to encourage Business Networking between local entrepreneurs and like-minded businesses in the target areas. This has led to successes through joint ventures, cross-licensing agreements and distribution through to manufacturing agreements.

  Although this approach has proved successful in North Down, it only operates successfully where a significant network of local entrepreneurial talent exists. In North Down, the SIGNAL Business Growth network, which was developed in partnership with local business over the last two years, fulfils this requirement. In the future the CORE network in County Antrim will also fulfil a similar role.

  Although the network-based approach is cost effective in terms of CPJ and success levels, it is very sensitive to sub-regional investment support policy differences. When local councils use their civic links as gateways to overseas business networks they get very concerned at losing a potential investment from their geographic areas. Part of the justification for expenditure in maintaining and supporting overseas civic links is to secure inward investment. There is a need for IDB operational policy to reflect the sensitivity of this issue and to seek to address it.

  Local authorities in Northern Ireland have limited powers to acquire and manage land for industrial development. There is also no remit to actively promote and attract inward investment. Rather we are required to host prospective target companies when they decide to choose North Down as a possible location. IDB funding guidelines for inward investment are statutorily the same for the whole of Northern Ireland. In practice, operating guidelines on support serve to tilt the playing field at a sub-regional level. The effect may be to skew projects away from the North Down area and even possibly from Northern Ireland.

  As earlier stated, a real estate based approach to inward investment is supported by Council. As a way forward it has the advantage of being geographically specific and could be "funded" through the transfer of land from IDB to councils for the purpose of economic development.

  In general we would note that an even greater level of co-ordination and co-operation with IDB is required. Discussions are currently underway between North Down and IDB regarding the development of the Balloo South Industrial Estate into a Business Park for the industry sectors being targeted by Council for Foreign Direct Investment. The new Business Support Centre being provided by Council to encourage further SME internationalisation will also be a means to advance this objective.

30 November 1999